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Cybersecurity firm logs on at SL Green’s One Madison

Palo Alto Networks taking 29K sf at new office development

One Madison Avenue; SL Green's Marc Holliday (Getty, SL Green)
One Madison Avenue; SL Green's Marc Holliday (Getty, SL Green)

A cybersecurity firm signed a lease at SL Green’s One Madison Avenue as the office project draws closer to the light at the end of the development tunnel. 

Palo Alto Networks is leasing nearly 29,000 square feet at the property in Midtown South, the New York Post reported. The company will occupy the entire 26th floor; its deal brings the building to 59 percent leased.

Other details — including asking rent, lease duration and brokers — were not disclosed. SL Green and Palo Alto Networks did not immediately respond to a request for comment.

SL Green is making progress on both the leasing and construction fronts. Completion of the 1.4 million-square-foot property is slated for October, five weeks ahead of schedule.

Chef Daniel Boulud in December signed multiple leases to operate spaces in the office tower. Two of Boulud’s spaces will be on the ground floor, combining to span 16,000 square feet. 

One will be a French-inspired marketplace with convenient dining options and a Parisian grand cafe, while the other will be a full-service steakhouse — Boulud’s first. The chef will also manage the food and beverage service in the tenant lounge and catering for rooftop deck events.

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Chelsea Piers Fitness was the first tenant, signing a 20-year lease for portions of the first two floors. The gym will operate across 56,000 square feet.

Mutual fund giant Franklin Templeton has also signed on for 15 years and 347,000 square feet. The asking rent at the time of that deal was $145 per square foot.

The development occupies a full-block site between Park and Madison Avenues, as well as East 23rd and East 24th Streets. SL Green acquired the property in 2005 for $918 million, proceeding to embark on a $2.3 billion redevelopment.

SL Green scored one of the largest office financing packages of 2021 when it landed a $1.25 billion loan. The owners of the development in December secured $575 million in construction financing from Wells Fargo, which has originated $1 billion in loans for the project in the last three years.

— Holden Walter-Warner

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